LINEKONG(HK:08267)2025-03-28 10:28Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 146.0 million, an increase of about 7.7% compared to RMB 135.5 million for the fiscal year ending December 31, 2023[3]. - The company's gross profit for the fiscal year ending December 31, 2024, was approximately RMB 21.4 million, a decrease of about 37.6% from RMB 34.3 million for the fiscal year ending December 31, 2023[3]. - The loss attributable to owners of the company for the fiscal year ending December 31, 2024, was approximately RMB 29.0 million, compared to a loss of RMB 17.4 million for the fiscal year ending December 31, 2023[3]. - The company reported an adjusted loss of approximately RMB 13.4 million for the fiscal year ending December 31, 2024, slightly improved from an adjusted loss of RMB 13.8 million for the fiscal year ending December 31, 2023[3]. - The company's revenue for the year ended December 31, 2024, was approximately RMB 146.0 million, an increase of about 7.8% from RMB 135.5 million in 2023[17]. - The cost of goods sold for the year ended December 31, 2024, was approximately RMB 124.6 million, representing an increase of about 23.1% from RMB 101.2 million in 2023[19]. - The gross profit for the year ended December 31, 2024, was approximately RMB 21.4 million, a decrease of about 37.6% from RMB 34.3 million in 2023, resulting in a gross margin of 14.7% compared to 25.3% in the previous year[22]. - Sales and marketing expenses for the year ended December 31, 2024, were approximately RMB 13.3 million, an increase of about 110.7% from RMB 6.3 million in 2023[23]. - Administrative expenses for the year ended December 31, 2024, were approximately RMB 36.5 million, an increase of about 31.6% from RMB 27.8 million in 2023[24]. - Research and development expenses for the year ended December 31, 2024, were approximately RMB 17.6 million, a decrease of about 20.5% from RMB 22.1 million in 2023[25]. - The net loss attributable to the owners for the year ended December 31, 2024, was approximately RMB 29.0 million, an increase of about 66.7% from RMB 17.4 million in 2023[28]. - The gaming business generated revenue of approximately RMB 39.8 million for the year ended December 31, 2024, a decrease of about 43.2% from RMB 70.1 million in 2023[18]. - The custom web series and other income contributed approximately RMB 106.3 million, an increase of about 62.5% from RMB 65.4 million in 2023[18]. - The company reported other losses of approximately RMB 3.3 million for the year ended December 31, 2024, an increase of about 249.6% from RMB 0.9 million in 2023[26]. - The adjusted net loss for the year ended December 31, 2024, was approximately RMB 13.4 million, a decrease of about 2.9% from RMB 13.8 million for the year ended December 31, 2023[29]. - The loss from continuing operations for the year was RMB 29.9 million, representing an increase of 75.9% compared to RMB 17.0 million in the previous year[29]. - Cash and cash equivalents as of December 31, 2024, amounted to approximately RMB 89.9 million, up from RMB 77.7 million as of December 31, 2023[32]. - Total capital expenditure for the year was approximately RMB 66.4 million, significantly higher than RMB 25.2 million in 2023, with major spending on film and web series rights and cryptocurrency purchases[33]. - The debt ratio as of December 31, 2024, was approximately 25.8%, an increase from 22.7% in the previous year[35]. - The company had no bank loans as of December 31, 2024, consistent with the previous year[35]. - There were no pledged assets as of December 31, 2024, remaining unchanged from the previous year[36]. - The board did not recommend a final dividend for the year ended December 31, 2024, similar to the previous year[39]. - The company incurred a total expense of RMB 192,215,000 for the year ended December 31, 2024, up from RMB 157,774,000 in 2023, reflecting a 22% increase in total expenses[73]. - Basic and diluted loss per share was RMB (0.08), compared to RMB (0.05) in the previous year, indicating a 60.0% increase in loss per share[42]. - Total assets decreased to RMB 315,528,000 from RMB 320,566,000, a decline of 1.2%[44]. - Total equity decreased to RMB 234,208,000 from RMB 247,660,000, a decline of 5.4%[46]. - The company reported a net financial income of RMB 965 thousand in 2024, down from RMB 2,071 thousand in 2023, showing a decrease of approximately 53.4%[64]. - The company reported a net loss attributable to owners of RMB 29,031,000 for the year ended December 31, 2024, compared to a loss of RMB 17,426,000 in 2023, representing a 66.7% increase in losses year-over-year[77]. - Total revenue from miscellaneous income for the year ended December 31, 2024, was RMB 15,030,000, a significant increase from RMB 843,000 in 2023[71]. - The company received government grants totaling RMB 250,000 in 2024, a decrease of 86.9% from RMB 1,908,000 in 2023[71]. - The company reported a net loss of RMB 4,426,000 from financial assets measured at fair value through profit or loss for the year ended December 31, 2024, compared to a gain of RMB 1,436,000 in 2023[72]. - The company’s trade payables decreased to RMB 3,175,000 as of December 31, 2024, from RMB 4,179,000 in 2023, indicating a reduction in outstanding liabilities[80]. - The company did not declare or pay any dividends for the years ended December 31, 2024, and 2023[81]. Investments and Strategic Initiatives - The company has made significant investments in the third-generation internet sector, acquiring 35% equity in Element, a leading NFT trading platform, to enhance its strategic focus[5]. - In 2024, Element Market recorded 4,497,937 unique trading addresses and a transaction volume of approximately $412.8 million[6]. - The company purchased 54.3479 units of Bitcoin for $4.0 million and sold 51.8 units, realizing a gain of $2.1 million, while also acquiring 998.39 units of Ethereum for $3.6 million[7]. - As of December 31, 2024, the company held 102.06568 units of Bitcoin and 818.1345 units of Ethereum, with a total cash consideration of $7.6 million and an estimated fair value of $12.2 million[7]. - The company plans to further increase its Bitcoin holdings in response to the growing interest in cryptocurrencies and the approval of spot Bitcoin and Ethereum ETFs in the U.S.[8]. - The company invested in EcoPowX, which focuses on providing power solutions for AI computing and Bitcoin networks through environmentally friendly facilities[8]. Content Production and Media - The company has successfully developed and tested the remastered version of "Naughty Heaven 1," which has over 20 million historical registered users and is set to launch in August 2024[9]. - The company operates 13 online games as of December 31, 2024, and aims to maintain stable operations in 2025, ensuring continuous cash flow through refined operations and user engagement[10]. - The youth romance series produced by the company achieved significant viewership, with Mango TV reaching 780 million views and Tencent Video peaking at 21,039 in popularity[11]. - The fantasy romance drama "Nian Nian Ren Jian Yu" garnered 70.48 million views from paid members by February 20, 2025, after its release on July 31, 2024[11]. - The company is focusing on high-quality content production in the short drama sector, with multiple micro-dramas launched in August 2024, although it has decided to pause short drama operations due to market saturation[15]. - The remastered version of "Naughty Heaven 1" emphasizes fairness in competition and enhances the characteristics of light competitive MOBA games[9]. - The company plans to upgrade its product offerings by collaborating with leading film and television companies, focusing on high-quality IPs and premium drama production in 2024[11]. - The ancient music-themed drama "Gu Yue Feng Hua Lu" is set to begin production in November 2024, aiming to showcase traditional culture and unique national charm[13]. - The company is committed to deepening its focus on realistic themes and suspenseful narratives, planning to launch the "Blue Port Suspense Trilogy" in 2025[13]. Corporate Governance and Management - Mr. Wang Feng has been appointed as both the Chairman and CEO since February 26, 2023, despite the code's recommendation to separate these roles, which the board believes ensures consistent leadership and strategic development[84]. - The board will regularly review the effectiveness of this arrangement and consider separating the roles of Chairman and CEO when deemed appropriate to maintain high standards of corporate governance[85]. - No directors or controlling shareholders are engaged in any business that directly or indirectly competes with the group as of the fiscal year ending December 31, 2024[86]. - Executive directors have committed not to accept positions or engage in business transactions that compete with the group, and they will not hold more than 5% economic interest in such competing businesses[87]. - Each director participated in multiple training sessions in 2024, including training on GEM listing rules and director responsibilities, to enhance their knowledge and skills[88]. - The Remuneration Committee, chaired by independent non-executive director Mr. Zhang Xiangdong, reviewed the remuneration of directors and senior management, finding it fair and reasonable[89]. - The Nomination Committee, chaired by Mr. Wang Feng, evaluated the composition and independence of the board, recommending re-election of directors at the 2024 annual general meeting[90]. - The company’s nomination policy aims to ensure board members possess the necessary skills and experience, with a focus on diversity in gender, age, culture, and professional background[91]. - The board has adopted a diversity policy, considering various factors such as gender, race, and industry experience in its composition since December 29, 2014[92]. - The board consists of five directors with a gender ratio of 4:1, including three independent non-executive directors[94]. - The company emphasizes employee diversity, maintaining a gender ratio of 29:28 among its staff[94]. - The audit committee was established on April 24, 2014, and is chaired by an independent non-executive director[95]. - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, ensuring compliance with applicable accounting standards[96]. - The external auditor, Tianzhi Hong Kong CPA Limited, confirmed that the financial figures align with the audited consolidated financial statements for the year ending December 31, 2024[97]. - The company plans to hold its annual general meeting on June 20, 2025[98]. - Share transfer registration will be suspended from June 17 to June 20, 2025, to determine eligibility for voting at the annual general meeting[99]. - The board of directors includes executive directors Wang Feng and Wang Jin, along with independent non-executive directors[100].